For a long time, online reviews were something of a frustration for savvy business leaders. On the one hand, they knew that feedback had the potential to provide them with vital information to determine product development. But on the other, they rarely got enough reviews to make concrete decisions based on reliable statistics.
With the rise of the internet, that’s all changed. Never before have so many firms been able to make good use of their data.
The following infographic plots some of the benefits of using reliable data from online reviews. Companies, for instance, can gain deeper insights into what the market wants and uncover undiscovered demands. They can then use this information to build a product development strategy that fulfils these needs.
There are, however, some problems. The first is the practical matter of finding people with the skills to interpret review big data – it’s not always easy.
The second has to do with the effect of sibling products. Firms that sell a lot of individual items can experience review dilution and find it more difficult to glean any insights about a particular product.
Finally, there’s the issue of over-responding to reviews. Companies that try to meet all the demands of their customers often tie themselves in knots and start losing money.
If you’re interested in online ratings and product development, please take a look at the following infographic. It provides data and statistics highlighting some of the issues you’ll face using this data stream for making strategic development decisions.
Infographic by University of Alabama Birmingham